Two Beats For TiVo In Less Than A Week

TiVo
operates in the red as competition drives up research and development costs and weighs down the bottom line.

TiVo
posted a loss for the fourth quarter, but it was slimmer than expected at 9 cents per share or $10.2 million. Analysts had predicted a loss of 12 cents per share.

The digital video recording company reported that it is working on driving its business away from traditional DVR to address new ways to consume television, said CEO Tom Rogers in a press release.

Increased research and development costs associated with the companys trailblazing mission weighed down the bottom line for the quarter and full year.

TiVo
recently won a copyright infringement lawsuit in the U.S. Court of Appeals against EchoStar, which allows TiVo to collect $300 million in previously awarded damages.

Still, the pioneer in the digital recording field faces mountains of competition from old hands and newcomers alike. In mid-February
Wal-Mart
announced its purchase of Silicon Valley startup Vudu, which offers digital video-on-demand service. While TiVo currently has on-demand video arrangements with
Blockbuster
and
Amazon.com
, the entry of retail giant Wal-Mart into the market could mean intensified competition for the digital video recording company. (See "Wal-Mart Throws Its Weight Into Digital.")

Still, TiVo is working to combat the shift with new product roll-outs, including the TiVo Premiere box which integrates TV with the internet. TiVo plans to capitalize on its alliance with
Best Buy
in the launch of the TiVo Premiere product to improve brand visibility and marketing in the coming year.

TiVo expects to stay in the red through the first quarter of 2010 with a forecast loss of between $19 million and $21 million as research and development costs continue to rise.

Shares traded slightly higher in after hours trading and gained back 0.2% to $17.11, after losing 2.4% during Monday's session before results were released.